Which of the following best describes the term ‘periodic review’?

Which of the following best describes the term ‘periodic review’?
A . Items are reviewed and orders placed depending on requirements
B. Items are reviewed when the Kanban is triggered
C. Items are reviewed when the price is at its lowest
D. Items are reviewed as part of an imprest system

View Answer

Answer: D

Explanation:

Fixed-Time Period System (or Periodic Review system) is the inventory management system in which inventory is checked in fixed time periods, T, and the quantity ordered varies.

The imprest system is a form of financial accounting system. The most common imprest system is the petty cash system. The base characteristic of an imprest system is that a fixed amount is re-served, which after a certain period of time or when circumstances require, because money was spent, it will be replenished.

So the correct answer should be "Items are reviewed as part of an imprest system"

LO 2, AC 2.3